ETH/USD Forecast: Risk of Extended Correction Remains
|ETH/USD failed to hold an important range support at $340.00 and moved down.|
|A crucial support area near $310.00-325.00 is still intact, which is a positive sign.|
|ETH/BTC extended declines and registered losses of more than 10 percent towards 0.125 BTC.|
Technically, the 4-hour chart indicators are slowly moving lower in the bullish territory.
Ether Price Testing Key Supports
Daily momentum of ETH/USD is low but negative in the short-term. After failing to breach $365.00-370.00, rebounds have been very corrective.
Additionally, ETH/BTC extended declines after yesterday’s break of 0.140 BTC. It is down by more than 10 percent and testing a key support at 0.125 BTC.
The overall market sentiment was devalued for Ether due to an increase in the selling pressure versus the US dollar and bitcoin. Looking at the hourly chart of ETH/USD, the pair fell after surpassing a bullish trend line at $362.00.
There was a sharp decline and yesterday’s highlighted range support at $340.00 was breached. The pair traded towards $325.00, which is currently holding losses.
On the upside, the broken range support at $340.00 may now act as a resistance along with a bearish trendline at $335.00. The $335.00-340.00 resistance zone also coincides with the 23.6 percent Fib retracement level of the last decline from the $364.00 high to $324.00 low.
The 4-hour chart of ETH/USD points three significant supports - $325.00, $310.00 and $290.00. The recent decline was protected by $325.00, but there are chances of further downsides in the near term.
The next crucial support sits at $310.00, which prevented losses many times earlier. On the upside, there is a major trendline resistance at $360.00.
In the short term, the notable turn in intraday momentum affirms the $360.00 range resistance and could force a slide towards the $310.00 support area. In the longer term, the momentum is clearly positive as long as Ether’s price is above $310.00-290.00.